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August 31 2017

Trump Tax Plan Shocker: Americans Should Keep More of Their Money

by Charlotte Hays

Quote of the Day:

The president’s vision focused on letting Americans keep more of their own money. Done rightly, this vision can unleash robust economic growth that will benefit all Americans.

--Adam Michel in The Daily Signal

 

The mantra of critics of the president 's tax proposals that were put forward yesterday in Springfield, Mo., is that they "need more details," but the broad outlines of the proposals are likely to be extremely appealing to those who believe that Americans should keep more of what they earn.

I'd like to call your attention to Adam Michel's analysis of the proposals in a piece at The Daily Signal which highlights "four ways to change our tax code to boost economic growth." Michel hails the president's vision for reform that can help the economy.

Michel writes:

The president’s vision focused on letting Americans keep more of their own money. Done rightly, this vision can unleash robust economic growth that will benefit all Americans.

America is suffering under the current tax code. It features high rates and endless complexity for most Americans while providing untold opportunities for a privileged few.

The rich can afford accountants and lawyers to navigate the code’s bureaucratic morass while every other American merely files their taxes and hopes for the best.

Michel's four points are: (1.) Allow full expensing for businesses, (2.) Lower the corporate income tax rate, (3.) Lower taxes for individuals, and (4.) Eliminate tax subsidies. I urge you to read the entire article--it is brief and clear--but since we talk less about the fourth item, I want to highlight what Michel wrote:

The tax code should not be used to pick winners and losers. That means that tax reform should eliminate as many individual and corporate deductions, credits, exclusions, and exemptions as possible.

Cronyism in the tax code slows economic growth as people’s time and investments are wasted on politically favored projects over those that consumers value. The economy suffers because of this market distortion.

Tax reform should eliminate unjustified tax subsidies that benefit politically favored industries, such as the myriad tax breaks for the production and consumption of wind farms, solar panels, and nuclear electricity production.

Other examples of the hundreds of such preferences include the state and local tax deduction, the research and development tax credit, education tax credits, and the exclusion for municipal bond interest.

Updating the tax code for the 21st century requires more than just cutting taxes. True reform will include structural reforms like expensing and the wholesale elimination of accumulated carve outs for privileged interests.

Tax reform that does all of this will truly make America great again through higher wages, more jobs, and untold opportunity.

 Meanwhile, a Wall Street Journal editorial worries that the proposals will be neutered through the complex process on the Hill and Ramesh Ponnuru is concerned that there is a catch that will slight parents.  

Independent Women’s Forum’s mission is to improve the lives of Americans by increasing the number of women who value free markets and personal liberty. Sister organization of Independent Women’s Voice.
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